8(1)The following section shall be inserted after section 646—
(1)This section applies where in the year of assessment in question—
(a)an individual holds two or more offices or employments which are associated in that year,
(b)one or more of them is an office or employment to which section 645 applies (“pensionable job”), and
(c)one or more of them is an office or employment to which that section does not apply (“non-pensionable job”).
(2)Where the emoluments for that year from the pensionable job (or jobs) are equal to or exceed the allowable maximum for that year, section 646(1) shall have effect in the case of the individual as if the references to relevant earnings were references to relevant earnings not attributable to the non-pensionable job (or jobs).
(3)Where the allowable maximum for that year exceeds the emoluments for that year from the pensionable job (or jobs), the individual’s net relevant earnings, so far as attributable to the non-pensionable job (or jobs), shall not be greater than the amount of the excess.
(4)For the purposes of this section two or more offices or employments held by an individual in a year of assessment are associated in that year if the employers in question are associated at any time during it.
(5)For the purposes of subsection (4) above, employers are associated if (directly or indirectly) one is controlled by the other or if both are controlled by a third person.
(6)In subsection (5) above the reference to control, in relation to a body corporate, shall be construed—
(a)where the body corporate is a close company, in accordance with section 416, and
(b)where it is not, in accordance with section 840.
(7)In this section “the allowable maximum” has the same meaning as in section 640A(1).”
(2)This paragraph shall have effect for the year 1989-90 and subsequent years of assessment.